The China Syndrome refers to a nuclear disaster where an exposed core in theory would drop through from the plant into the earth and go all the way to China. A meltdown of biblical proportion. Well here we stand with the core of our economy exposed to world governments that are witness to our vulnerability, THE ECONOMY. This is the biggest threat to our way of life since the Cuban Missile Crisis.
As Congress plays politics and take a few years to even pass one bill to shore up the massive crisis in the debt market I can only say YOUR FIRED! If the US was a company we would be bankrupt and our leaders – like a board of directors or executive management would be in jail. Decades of out of control spending and having an open check book from China, Russia and the rest of the world has put our way of life at risk. If the world stopped financing our debt at every Treasury auction the US economy would halt and the core meltdown would be reality. Economic War can topple us.
I will tell you why. The world is watching and can see how vulnerable America is because of our economic meltdown. Ever heard that “perception is reality”? Well never more true than in world economics. The perception of credit worthiness in the eyes of the world is critical to maintaining our way of life. Why? Because we are beholden to world powers that own so much of our national debt and currency that even the hint that America is not credit worthy, on a whim or outright economic war those big countries can crater our economy. China Syndrome = $1.6 Trillion of our debt and currency owned by China.
Remember when Japan even hinted that they were going to sell off some of their US treasury holdings almost 20 years ago. KABOOM! Our markets went into a free fall. That was simply a hint and the President had to call the Japanese Prime Minister to stave off disaster – we were that close. That pales in comparison to say China simply saying it is going to stop buying US debt at out treasury auctions. Or say the world starts to charge more interest on our debt. The underpinnings of our economy would be ripped out. No wonder why FICA and The FED have had to step in and stabilize the mortgage industry. If they did’t not and do not continue to the world will lose its faith in our economy and that is disaster.
Economic War can now be waged by so many countries on earth that if several wanted to or some of the major ones sought our destruction not a shot would fired. They would simply unload our debt – SIMPLE AS THAT. And here Congress sits like a deer in headlights while our country faces its biggest crisis since the Great Depression. Congress is playing party politics and only incrementally doing anything to help. The Mortgage Bill being dragged through Congress is ridiculous and it has taken a few years to get this far.
When you wake up each day thank China, Russia, The Middle East and the rest of the world that they allow us to economically continue. I say mandate 10% of every pension, 401k, endowment (that are required to invest 100% of the money they manage) be placed into 1 pool to buy back all US debts and currency being hoarded. A simple plan and would hugely increase the value of our markets and every American’s portfolio. The $6 to $7 trillion raised would be LIBERATION DAY! The day the US and all the groups that made all their money here bought back America from the clutches of the world. It is in everyone’s best interest and a financial sound law that benefits everyone in America and saves the US from an UN NATURAL DISASTER.
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